Designs for coin-operated pay telephones typically feature one or more coin slots at the top of the telephone and a coin return door generally located directly below the slots. The coin return lever is generally located immediately below the coin slots. In GTE-style telephones, for instance, the slot, coin return door and mechanism are located on the right when facing the telephone, while on Western Electric (WECO)-style telephones, these are found on the left.
In recent years, after deregulation of the telephone industry, a market has been created for business owners and others who wish to own their own pay telephones rather than continuing to participate in profits from telephones placed on premises by the telephone company. This coin-operated, customer-owned telephone ("COCOT") industry features stiff competition among a number of entrants, and is very price competitive.
With the advent of the integrated circuit, it has additionally been possible to incorporate intelligent features into pay telephones. Accordingly, such telephones at present may contain microcircuits which store telephone rating information that allows the telephone to calculate rates for calls, collect appropriate coinage or interact with credit cards, and initiate, control and terminate local and long distance connections. As the telephones becomes more intelligent, the industry has noted a significant decrease in the number of calls controlled by coins rather than credit cards.
These factors have generated a market for pay telephones which do not include coin mechanisms, with or without intelligent features.